UK regulators consider Co-op Bank enforcement action - sources

LONDON, Nov 20 (Reuters) - Britain's financial regulators are assessing whether to take enforcement action against the Co-operative Bank to determine if it misled investors over its financial health, sources familiar with the matter said.

"The Financial Conduct Authority and the Prudential (Berlin: PRU.BE - news) Regulation Authority are currently assessing whether Co-op Bank should be referred to enforcement activity," one of the sources said on Wednesday.

The sources said Britain's finance ministry will meet with regulators to thrash out terms of an enquiry into mounting problems at the bank.

However, the sources said the timing of the enquiry could be affected by possible enforcement action and any criminal charges brought against ex-Co-op Bank Chairman Paul Flowers.

Flowers, who oversaw the bank's near collapse when a 1.5 billion pound capital shortfall was exposed, was caught on film allegedly arranging to buy illegal drugs.